Financial institution officers and a bank consumer had been charged inside the Chicago area Tuesday with fraud for submitting a false loan application to the SBA (SBA) for nearly $4 million.
James Graber and Kristin King, along side Ryan Cole of Garland, Texas, were charged by a federal grand jury in Rockford with wire fraud in reference to a mortgage application made to the SBA.
Authorities charged Cole with counts of making false statements to the SBA on a loan application, Graber and King have been each charged with one be count.
The case centers around SunLee Development, which owned a industrial building at 4001 North Perryville Rd., in Loves Park, Illinois. SunLee acquired three loans totaling greater than $3 million at a nearby financial institution in which Graber, 57, was employed as a vice president and King, forty four, was also employed as a VP and government guaranteed lending specialist. Cole, 45, and a member of SunLee, guaranteed the three loans and therefore was liable in the event of default.
SunLee fell behind on its loan because of tenants at 4001 North Perryville failure to pay rent. The indictment alleges that Cole helped tenants at 4001 North Perryville to apply for an SBA guaranteed loan and to purchase the building from SunLee. The tenants and Cole are known as the Perryville Investment Group.
The indictment states that in March of 2012, Cole, Graber and King submitted a $3.98 million loan application to the SBA for the Perryville Investment Group that contained false statements and hid material statistics. The Perryville Investment Group subsequently defaulted on the SBA loan.
Each count of wire fraud, making false statements and concealing material facts to the SBA comes with a maximum penalty of up to 30 years in prison and a fine of up to $1 million.
If you have defaulted on an SBA loan, you may be eligible for an SBA loan offer in compromise. The SBA loan offer in compromise may allow you to settle the debt for less than the full amount. Contact Protect Law Group at 1-888-756-9969 today for a consultation with a qualified SBA workout attorney.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Client personally guaranteed SBA 7(a) loan for $350,000. The small business failed but because of the personal guarantee liability, the client continued to pay the monthly principal & interest out-of-pocket draining his savings. Client hired a local attorney but quickly realized that he was not familiar with SBA-backed loans or their standard operating procedures. Our firm was subsequently hired after the client received the SBA's official 60-day notice. After back-and-forth negotiations, we were able to convince the SBA to reinstate the loan, retract the acceleration of the outstanding balance, modify the original terms, and approve a structured workout reducing the interest rate from 7.75% to 0% and extending the maturity date for a longer period to make the monthly payments affordable. In conclusion, not only we were able to help the client avoid litigation and bankruptcy, but we also save him approximately $227,945 over the term of the workout.
Client personally guaranteed an SBA 7(a) loan to help with a relative’s new business venture. After the business failed, Treasury was able to secure a recurring Treasury Offset Program (TOP) levy against our client’s monthly Social Security Benefits based on the claim that he owed over $1.2 million dollars. We initially submitted a Cross-Servicing Dispute, but then, prepared and filed an Appeals Petition with the SBA Office of Hearings and Appeals (SBA OHA). As a result of our efforts, we were able to convince the SBA to not only terminate the claimed debt of $1.2 million dollars against our client (without him having to file bankruptcy), but also refund the past recurring amounts that were offset from his Social Security Benefits in connection with the TOP levy.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
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